What are the Netherlands financial reporting requirements for Dutch companies with a business in the Netherlands?

By 9 January, 2018December 21st, 2022No Comments

Dutch limited liability companies must prepare its financial statements. The content of the financial statements (balance sheet, the profit and loss account, and explanatory notes and the consolidated annual accounts if applicable) is based on the size of the Dutch company (total assets, turnover and employees).

It may suffice for small and medium-sized companies to publish an abridged balance sheet and explanatory notes. A small company does not need to publish its profit and loss accounts and other information, medium-sized companies must publish an abridged version of their profit and loss account. Small, medium-sized, and group companies whose accounts are included in the consolidated accounts of another company are subjected to less stringent reporting, auditing, and publication requirements.

The annual accounts prepared in accordance with Generally-Accepted Accounting Principles (GAAP) shall provide such a view as enables a sound judgment to be formed on the assets and liabilities and results of the company and, insofar as the nature of annual accounts permit, of its solvency and liquidity. If so justified by the international structure of its group, the annual accounts may be prepared in accordance with GAAP of one of the members of the group. If the company makes use of the aforementioned possibility, it shall make a statement in the explanatory notes of its annual accounts.

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Medium-sized and large companies are required to have their annual accounts audited. Annual accounts of group companies that do not need to be drawn up in accordance with the legal requirements do not need to be audited. The external auditor must examine whether the annual accounts provide the requisite legal disclosures and whether the annual accounts, the director’s report, and other information comply with the statutory requirements. It should also be verified that the director’s report does not conflict with the annual accounts. The auditor must be a certified Dutch accountant or a foreign auditor licensed to practice in the Netherlands and is to be appointed by the shareholders. If the shareholders fail to do so, other respective corporate bodies may be authorized to appoint the accountant.

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